Weyerhaeuser (NYSE:WY) Posts Earnings Results, Beats Estimates By $0.08 EPS

Key Points

• Weyerhaeuser beat expectations: The REIT reported adjusted EPS of $0.11, beating the $0.03 consensus by $0.08, and posted revenue of $1.73 billion versus expectations of $1.71 billion (net margin 4.69%, ROE 1.50%).
• The company paid a quarterly dividend of $0.21 (annualized $0.84) for a yield of 3.4%, but carries a very high payout ratio of 190.91%, which could signal dividend sustainability concerns.
• Insiders bought stock recently (a director purchased 20,000 shares at $25.70 and another bought 4,000 at $25.35), the shares traded up to $24.52, and analysts hold a consensus "Hold" rating with a $28.75 target.

Weyerhaeuser (NYSE:WY - Get Free Report) posted its earnings results on Thursday. The real estate investment trust reported $0.11 EPS for the quarter, topping analysts' consensus estimates of $0.03 by $0.08, FiscalAI reports. Weyerhaeuser had a net margin of 4.69% and a return on equity of 1.50%. The firm had revenue of $1.73 billion during the quarter, compared to analysts' expectations of $1.71 billion.

Weyerhaeuser Stock Performance

Weyerhaeuser stock traded up $0.27 during midday trading on Thursday, reaching $24.52. The stock had a trading volume of 8,279,418 shares, compared to its average volume of 6,262,623. Weyerhaeuser has a 12 month low of $21.16 and a 12 month high of $27.86. The firm's 50-day moving average price is $24.35 and its 200 day moving average price is $24.19. The firm has a market capitalization of $17.68 billion, a PE ratio of 55.74, a P/E/G ratio of 2.74 and a beta of 0.98. The company has a quick ratio of 0.83, a current ratio of 1.29 and a debt-to-equity ratio of 0.54.

Weyerhaeuser Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, March 20th. Stockholders of record on Tuesday, March 10th were paid a dividend of $0.21 per share. This represents a $0.84 dividend on an annualized basis and a dividend yield of 3.4%. The ex-dividend date was Tuesday, March 10th. Weyerhaeuser's payout ratio is presently 190.91%.

Insider Transactions at Weyerhaeuser

In related news, Director Richard Beckwitt bought 20,000 shares of Weyerhaeuser stock in a transaction on Thursday, February 19th. The stock was acquired at an average price of $25.70 per share, with a total value of $514,000.00. Following the acquisition, the director directly owned 24,066 shares of the company's stock, valued at $618,496.20. This represents a 491.88% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director James Calvin O'rourke bought 4,000 shares of Weyerhaeuser stock in a transaction on Friday, February 20th. The shares were bought at an average cost of $25.35 per share, with a total value of $101,400.00. Following the acquisition, the director directly owned 28,661 shares in the company, valued at approximately $726,556.35. This represents a 16.22% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders own 0.31% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the business. Auxier Asset Management LLC boosted its stake in Weyerhaeuser by 57.5% in the fourth quarter. Auxier Asset Management LLC now owns 15,344 shares of the real estate investment trust's stock worth $363,000 after buying an additional 5,599 shares in the last quarter. Brooklyn Investment Group purchased a new stake in Weyerhaeuser in the fourth quarter worth approximately $284,000. Gamco Investors INC. ET AL purchased a new stake in Weyerhaeuser in the second quarter worth approximately $275,000. Virtu Financial LLC purchased a new stake in Weyerhaeuser in the third quarter worth approximately $260,000. Finally, BOKF NA boosted its stake in Weyerhaeuser by 4.6% in the third quarter. BOKF NA now owns 10,503 shares of the real estate investment trust's stock worth $260,000 after buying an additional 463 shares in the last quarter. Hedge funds and other institutional investors own 82.99% of the company's stock.

Analyst Ratings Changes

Several research analysts have recently issued reports on the company. Weiss Ratings raised Weyerhaeuser from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Tuesday, February 10th. Wall Street Zen cut Weyerhaeuser from a "hold" rating to a "sell" rating in a report on Saturday, February 21st. Canadian Imperial Bank of Commerce set a $28.00 price target on Weyerhaeuser in a report on Thursday, April 23rd. DA Davidson restated a "buy" rating and set a $31.00 price target on shares of Weyerhaeuser in a report on Tuesday, March 31st. Finally, Truist Financial cut their price target on Weyerhaeuser from $29.00 to $28.00 and set a "hold" rating on the stock in a report on Wednesday, April 15th. Six analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $28.75.

Weyerhaeuser Company Profile

Weyerhaeuser Company NYSE: WY is a leading integrated forest products company whose core businesses are timberland ownership and forest products manufacturing. The company owns and manages large tracts of timberland and harvests, processes and sells wood and wood-derived products used primarily in residential and industrial construction. Its manufacturing operations produce a range of building materials, including lumber, engineered wood products and wood panels, alongside fiber-based products that serve multiple commercial applications.

Founded in 1900 by Frederick Weyerhaeuser and headquartered in Seattle, Washington, the company has a long history in the North American forest products industry.

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